Research Study Finds Correlation Between Mature ERM Programs and
An Average 25% Jump in Firm Value
“With key findings that indicate that organizations exhibiting
mature risk management practices realize an increased valuation premium
of 25%, risk professionals now have the documented support that is often
necessary to gain buy-in from senior leadership,” said Carol Fox, RIMS
Director of Strategic and Enterprise Risk practice. “We hope these
reports will spur greater investment by organizations in risk management
staffing, enterprise-wide risk training and awareness, analysis, and
other resources to achieve higher levels of risk management maturity –
The study’s authors used data from RIMS Risk Maturity Model
to assess the correlation between mature risk programs and
organizational value. These RIMS Executive Reports discuss the
attributes of a mature ERM program, how each of those attributes impacts
value, as well as a summary of the researchers’ key findings.
“The free assessment offered by RIMS and LogicManager provides a
logical starting place for organizations to assess where they are on the
maturity continuum and take action to create value,” states Steven
Minsky, CEO of LogicManager, Inc.
and architect of the RIMS’ Risk Maturity Model. “The assessment, based
on guidelines set forth in the model, serves as a roadmap for
The companion RIMS Executive Report “Testing Value Creation Through ERM Maturity”
authored by Mark Farrell of Queen’s University Management School and
Dr. Ronan Gallagher of University of Edinburgh Business School, provides
a more in-depth look at their findings and research methodology. The
authors published their original findings in a Journal of Risk and
Insurance article “The Valuation of Enterprise Risk Management”
– a wholly independent and peer-reviewed project.
Both RIMS Executive Reports are available in RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge.